Hedge Fund Assets Grow Despite Investor Redemptions

(Opalesque) Preqin’s latest on asset flows in the hedge fund industry finds that across the first three quarters of 2016 assets held by hedge fund managers increased by 2.9%, taking total industry AUM to $3.24tn. Across most strategies, strong returns have been the central driver of asset growth, with the industry posting gains of 5.44% through Q1-Q3 2016. Strong performance for equity and macro strategies funds overcame net investor redemptions to see their AUM grow in the first three quarters of the year, while credit, relative value and multi-strategy funds all saw their total assets fall. By contrast, though, CTAs have seen net inflows of $27bn in 2016 YTD, growing the strategy’s AUM by 13.5% to reach $253bn despite only making gains of 0.97% across the first three quarters.

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